U.S. non-manufacturing sector continued to expand at a relatively fast pace in June, suggesting the economy was gaining momentum in the second quarter.
The Non-Manufacturing Index (NMI), which measures activity in the U.S. service sector, registered 57.4 in June, 0.5 point higher than the May reading of 56.9, the Institute for Supply Management (ISM) said in its monthly survey on Thursday.
The NMI survey covers all sectors outside of manufacturing. A reading above 50 percent indicates expansion of the service sector. The business activity index edged up 0.1 point to 60.8; the new orders component of the index, a signal of future business, went up 2.8 points to 60.5; while the employment index decreased 2 points to 55.8. Of the 18 industries tracked by the NMI, 16 industries reported growth.
According to the report, the majority of companies surveyed held positive view about their business conditions and the overall economy.
A separate ISM report released on Wednesday also showed that U.S. manufacturing activity also gained growth momentum in June.
These data could support economists' view that the U.S. economy will rebound in the second quarter from the lackluster growth of 1.4 percent in the first quarter.
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